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The failure of government oversight from "summary" of The Big Short: Inside the Doomsday Machine (movie tie-in) by Michael Lewis
The failure of government oversight is a central theme in the book, illustrating how regulators and policymakers fell short in their duty to protect the financial system. The author reveals the ways in which key government agencies, such as the Securities and Exchange Commission (SEC) and the Federal Reserve, failed to effectively monitor and regulate the activities of Wall Street. One example of this failure is the SEC's inability to detect the risky practices of big banks and investment firms leading up to the financial crisis of 2008. The agency was supposed to act as a watchdog, ensuring that financial institutions were operating in a safe and sound manner. However, the SEC was often blindsided by complex financial products and deceptive practices that were used to take advantage of investors. Similarly, the Federal Reserve, which is responsib...
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